India's information technology services export is only 2 per cent of the worldwide IT spending despite the global focus on the country's offshoring capabilities, merchant banker Goldman Sachs said in its latest report.

"India's software and services export industry makes up only about 2 per cent of the worldwide IT spending," the report said.

The IT sector contributes only 3 per cent to India's GDP but is slated to account for 8-10 per cent of the GDP by 2008, Goldman Sachs said.

Although a small player in the global IT services, these exports are crucial for India as they have a profound impact on its balance of payments. The software and services export clocked an annual growth of 30 per cent in 2003 and constituted 32 per cent of the total exports, it said.

Beyond IT, offshoring opportunities exist in a number of industries including accounting, financial services, medical services and pharmaceuticals.

"In the pharmaceutical sector alone, offshoring opportunities could double by 2007 to roughly $50 billion," the report said.